Melbourne’s property market has commenced 2026 with stable activity levels, with buyer enquiry returning following the summer period and transaction volumes tracking in line with seasonal
expectations.
According to REA Group Senior Economist Eleanor Creagh, early year activity typically reflects buyers who paused their search over the holiday period returning to the market, noting that “buyer demand remains present, however purchasers are becoming increasingly price sensitive and selective in their decision making.”
Recent commentary from Domain’s Chief of Research and Economics, Dr Nicola Powell, supports this trend, highlighting that “properties aligned with current market expectations are continuing to transact efficiently, while listings that exceed buyer price tolerance are experiencing extended days on market.”
The Reserve Bank’s recent decision to increase the cash rate to 3.85 percent has been a key focus across the property sector. While higher interest rates continue to influence borrowing capacity, market activity has remained relatively resilient. Financial market analysts continue to indicate that rate movements will remain closely tied to inflation data and broader economic performance throughout 2026.
Affordability continues to shape buyer behaviour across metropolitan Melbourne. Industry data shows sustained demand for units and townhouses, particularly in well connected suburbs, as buyers prioritise value and accessibility. At the same time, rental markets remain undersupplied, with vacancy rates continuing to sit below long term averages, contributing to ongoing rental price pressure.
Overall, the current Melbourne market is best described as balanced. Buyers remain active but are conducting more detailed due diligence, with presentation, pricing strategy and location continuing to heavily influence campaign success.
For tailored advice on current market conditions or your property’s position in today’s market, speak with your local Noel Jones office.
